Weekly Technical Forex Forecast 12-16.08.2019


EUR/USD

The Euro continues trading within the local range between 2 strong levels: the support 1.1170 and the resistance 1.1240. It is also necessary to highlight that the large volume is concentrated inside this consolidation.

Given all these factors, we can open new positions only after a confident and rapid exit of the price from the range. Moreover, the movement should be supported by the large volume, which will be a more accurate signal for entering the market.

While the pair is trading inside the consolidation, it is better to stay out of the market.

GBP/USD

The Pound showed a significant and sharp drop and broke down the previous support level, which is an excellent bearish signal. It is also necessary to highlight a new volume resistance level 1.2085. Thus, we should give preference to short positions.

Sales can be opened after a small and smooth correction of the price up, in order to get a more profitable entry point. A stop loss should be placed just above the breakout volume bar. A potential of the deal is more than 120 points.

USD/JPY

The Yen continued its fall and is now testing the support level/lower limit of the local range 105.56. Thus, we can consider the scenario of the breakdown of this mark, which will allow us to open short positions. The breakout movement should be confident and supported by the large volume, which will be a more accurate signal for entering the market. A stop loss should be located just above the breakout volume bar. A potential of the deal is more than 100 points.

USD/CAD

The situation with the Canadian dollar has not changed, since the price is still within the local range between 2 strong volume levels. They are the support 1.3119 and the resistance 1.3333. Thus, we can open new positions only after the rapid exit of the price from the consolidation. Moreover, the movement should be supported by the large volume, which will protect us from a false breakout.

While the price is trading within the range, it is better to stay out of the market.

AUD/USD

The Australian dollar resumed its decline, but the movement was small, so we can not open sales yet. Nevertheless, given the presence of a strong downtrend, we should give preference to short positions. We can enter the market after a continuation of the decline, but the movement should be on the large volume. This will be a more reliable signal for entering the market. A stop loss should be placed just above the beginning of this fall. A potential of the deal is more than 100 points.

XAU/USD

Gold continues trading slightly above support level 1493.20, in which the large volume is concentrated. Given this fact and the presence of a strong local uptrend, we still should give preference to long positions.

Purchases can be opened after a resumption of a sharp and rapid growth of the price on the large volume, which will be a more accurate signal to enter the market. A stop loss should be placed just below the support level. A potential of the deal is more than 200 points.

The sentiment: this technical indicator fully confirms all our trading scenarios, which is an excellent additional signal. As with the Euro and the Canadian dollar, we can only use this indicator after a confident exit of prices from local consolidations.

The best deals: GBP/USD, USD/JPY

Potentially good deals: AUD/USD, XAU/USD

While out of the market: EUR/USD, USD/CAD

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